Question

Answer the following multiple choice questions, show workings where applicable

1) the following information is needed to reconcile the cash balance for mike right ltd.

a deposit of $5,794.62 is in transit

oustanding cheques total $1,533.25

the book balance is $5,695.62

the bookkeeper recorded a $1,524 cheque as $15,240 in payment of the current month's rent

the bank balance at february 28, 2008 was $16,500.25

a deposit of $300 was credited by the bank for $3000

a customer cheque for $1,280 was returned for nonsufficient funds

the bank service charge is $70

based on the above information, which of the following is the correct adjusted cash book balance?

a) $6,670.38

b) $20,761.62

c) 18,061.62

d) 10,140.24

2) the following information is needed to reconcile the cash balance for woods paper products:

A deposit of $5,794.62 is in transit

Outstanding checks total $1,533.25

The book balance is $5,695.62

The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month's rent

The bank balance at February 28, 2008 was $16,500.25

A deposit of $300 was credited by the bank for $3,000

A customer's check for $1,280 was returned for non-sufficient funds

The bank service charge is $70

What was the adjusted bank balance?

A) $6,472.38

B) $18, 061.62

C) $9, 355.63

D) $14, 938.88

3) Which of the following depreciation methods allocates an equal amount of depreciation to each year?

A) Units-of production

B) Straight line

C) Declining balance

D) Double declining balance

4) Which of the following is the expected cash value of an asset at the end of its useful life?

A) Book value

B) Residual value

C) Carrying value

D) Market value

Answer 1

the book balance	$     5,695.62
Add: Error in recording of rent ($15,240-$1,524)	$   13,716.00
Less: Customer check returned	$   (1,280.00)
Less: Bank service charge	$        (70.00)
adjusted cash book balance	$   18,061.62

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